Google is a master kitchen for IT innovation. Its huge real-time transaction engine is the envy of all but a few businesses.

Meanwhile its contact with consumers means that businesses offering digital services are constantly compared to it. These customers for example want their banking services to be as easy to use as their Google searches.

While Google has influenced development of its Vault platform, it does not make a bank into Google. This is important because Google is often cited as the model for the perfect digital bank. But is it fair and realistic to compare banks to Google and expect them to follow it?

One of my contacts in the UK banking sector said in UK banking “the consequences of failure drives your approach to IT.”

“Google is mainly an advertising agency which exploits your data so it can serve up the ads. If it goes wrong, it probably won’t affect people’s daily lives in the same way a failed bank can cause financial misery and a vast amount of clean-up afterwards.”

When banks have problems, like those experienced during the 2008 meltdown the ramifications are wide. “If Google goes down for a while I doubt it will damage economies and businesses in the way a bank can,” he added.

“So I have always considered Google to be a cutting-edge innovator trying to see what it can make work, whereas the banks have to be very careful and make sure nothing goes wrong. Those philosophies are worlds apart and I fear the consequences for the banking industry if it attempts to mimic Google. It’s not in their DNA so they need to proceed with caution. It may be better for Google to set up a bank and see how it gets along before trying to Googlify the traditional banks.”

Others argue that if you get the IT right along the lines of Google then things are less likely to go wrong.

Start the conversation

0 comments

Send me notifications when other members comment.

Register

I agree to TechTarget’s Terms of Use, Privacy Policy, and the transfer of my information to the United States for processing to provide me with relevant information as described in our Privacy Policy.

Please check the box if you want to proceed.

I agree to my information being processed by TechTarget and its Partners to contact me via phone, email, or other means regarding information relevant to my professional interests. I may unsubscribe at any time.